Steel demand to witness continued growth next year
₹10 trillion, which is almost three times the outlay of 2019-20. “India’s emphasis on sustainable solutions is expected to drive increased usage (of stainless steel) across traditional applications, process industries, and the household sector, as well as in emerging strategic sectors such as defence, aerospace, and the green and blue economies," Abhudhay Jindal, managing director of JSL said. Tata Steel sees growth in demand for steel to stay for the medium term.
“The Indian economy is likely to remain buoyant even with a high-interest rate environment, and Indian steel demand is expected to retain its growth momentum. Investments in infrastructure and real estate, strong consumer sentiments, and government focus on turning India into a global production hub will continue to drive the domestic steel demand in India," Tata Steel said in an email response. However, some observers see elections impacting the sector.
“We might witness a decline in demand during Q4. As the election code of conduct kicks in, it is likely to have an influence on the impetus to infra and construction spending. So, we can expect a shift from the current 15% growth to around 10% by the close of FY24," said Priyesh Ruparelia, vice president, co-group head, corporate sector ratings at Icra Ltd.
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